SG MICRO

SG Micro opened HK morning session at HKD 86, quickly retreated to HKD 84.55, and closed at HKD 84.6, up 8.46% from prior close of HKD 78, with intraday range of 5.4%. The rally was driven by its addition to the Southbound Stock Connect eligible securities list and GIC's continued accumulation of semiconductor stocks, with GIC having raised its stake to 16.4%. Q1 revenue surged 47.23% YoY to HKD 1.245 billion, net profit jumped 119.09% YoY, and EPS reached HKD 0.2239 with ROE of 9.19%. However, the stock at HKD 84.6 remains 40.55% below its 52-week high of HKD 142.3 and trades below both the 20-day MA (HKD 98.045) and 60-day MA (HKD 102.824), with YTD loss of 32.48% and volume of only 8,900 shares, indicating cautious follow-through.

3661.HK opened higher at HK$96.75 but then reversed sharply, hitting an intraday high of HK$96.30 before sliding to HK$90.75 (intraday low), closing the morning session 6.24% below the previous close of HK$96.90 on thin volume of 9,100 shares (turnover rate 0.03%). The sell-off was primarily driven by the end of the stabilization period and full exercise of the over-allotment option, along with weakness in the broader semiconductor sector (e.g., Sungrow Power dropped over 10%). Despite the weak price action, Q1 2026 revenue rose 47.23% YoY to HK$1.245 billion, net profit surged 119.09% YoY to HK$140.2 million, and EPS grew 116.66% YoY, indicating strong fundamental improvement. However, the stock remains below its 20-day MA (HK$103.92) and 60-day MA (HK$105.49), with a YTD decline of 27.49% and a 36.16% discount from its 52-week high of HK$142.30. While a near-term overhang persists, the stock's inclusion in the Southbound Stock Connect eligible securities list may attract fresh buying interest.

SG Micro Corp staged a low-open high-rise session, closing at HK$94.00, up 5.03%, driven by Q1 net profit surging 119.09% YoY to HK$140.2 million, revenue rising 47.23% YoY to HK$1.24 billion, and EPS jumping 116.66% YoY to HK$0.2239, along with the semiconductor sector's recent appeal to southbound funds after the stock was added to the Stock Connect eligible list. The afternoon session lifted from HK$88.50 to the day's high of HK$94.00. However, the stock remains 33.94% below its 52-week high of HK$142.3 and trades below the 20-day moving average of HK$105.093, suggesting the rally has yet to reverse the medium-term downtrend.

The stock opened at HK$94.20 and fell sharply to HK$85.00 during the morning session, closing at HK$88.05, down 10.8% from the previous close of HK$98.70. The decline was driven by a general pullback in semiconductor stocks and profit-taking after GIC's recent stake increases failed to support the price. The intraday low of HK$85.00 marked a new 52-week low, and the stock is now 38.1% below its 52-week high of HK$142.30, with a year-to-date drop of 29.7%, well below its 20-day moving average of HK$106.59. Despite strong Q1 earnings—revenue up 47.2% YoY to HK$1.245 billion, net profit surging 119.1% to HK$140.2 million, and EPS growth of 116.7%—the high valuation (PE 83.2x, PB 9.3x) continues to weigh on the stock. However, the full exercise of the over-allotment option by GIC on July 24 signals some institutional conviction in the company's prospects.

Shares of Shengbang Microelectronics (3661.HK) opened at HK$90.25 and staged a sharp intraday reversal in the morning session, initially dipping to a low of HK$89.70 (just 1.6% above the 52-week low of HK$88.25) before surging 7.7% to close the morning at HK$94.85, fully erasing the prior session's losses. The rebound was driven by a semiconductor sector rally, with sentiment boosted by GIC's multiple stake increases (from 13.09% to 16.4%) in recent weeks. The company's Q1 2026 results provided fundamental support—revenue of HK$1.245 billion and net profit of HK$140.2 million, up 47.2% and 119.1% YoY respectively, with EPS of HK$0.22 surging 116.7%. However, the stock remains 33.4% below its 52-week high of HK$142.30 and trades well below its 20-day MA of HK$107.36, with a YTD decline of 24.3%. The PE of 92.8x and PB of 10.4x suggest the earnings turnaround has yet to be fully reflected in the share price.